The Interest Time Bomb
Published: February 2025
Interest on the national debt hit $952.0B in FY2025 — now larger than the entire defense budget. This is the compounding cost of decades of borrowing.
Interest (FY2025)
$952.0B
Larger than defense budget
Growth Since 2017
+262%
$263.0B → $952.0B
Per Taxpayer
$5,913/yr
Just in interest payments
CBO Projection (2030)
$1.35T
42% higher than today
Every dollar spent on interest is a dollar that can't build roads, fund schools, or defend the nation.
Interest Payments: 2017–2030
Solid line = actual payments. Dashed line = CBO projections. Source: Treasury, CBO
How Interest Compares to Major Programs
FY2025 budget comparison. Interest now exceeds defense spending.
The Debt Behind the Interest
National Debt
$36.2T
Interest % of Revenue
21.6%
Debt Per Citizen
$108,060
Debt Per Taxpayer
$224,845
This Is the Real Crisis
The national conversation focuses on headline spending — defense, entitlements, foreign aid. But the compounding cost of past borrowing is quietly becoming the largest line item in the budget. Interest doesn't build anything. It doesn't protect anyone. It doesn't educate a single child. It's the price of putting off hard choices — and it grows every year whether we like it or not.
Year-by-Year Interest Payments
| Fiscal Year | Interest | Per Taxpayer | % of Revenue | Type |
|---|---|---|---|---|
| 2017 | $263.0B | $1,634 | 6% | Actual |
| 2018 | $325.0B | $2,019 | 7.4% | Actual |
| 2019 | $375.0B | $2,329 | 8.5% | Actual |
| 2020 | $345.0B | $2,143 | 7.8% | Actual |
| 2021 | $352.0B | $2,186 | 8% | Actual |
| 2022 | $475.0B | $2,950 | 10.8% | Actual |
| 2023 | $659.0B | $4,093 | 15% | Actual |
| 2024 | $882.0B | $5,478 | 20% | Actual |
| 2025 | $952.0B | $5,913 | 21.6% | Actual |